Henna Company produces and sells two products, Carvings and Mementos. It manufactures these products in separa factories and markets them through different channels. They have no shared costs. This year, the company sold 47,0 units of each product. Income statements for each product follow. Sales Variable costs Contribution margin Fixed costs Income Carvings $ 813,100 487,860 325,240 194,240 $ 131,000 Mementos $ 813,100 81,310 731,790 600,790 $ 131,000
Henna Company produces and sells two products, Carvings and Mementos. It manufactures these products in separa factories and markets them through different channels. They have no shared costs. This year, the company sold 47,0 units of each product. Income statements for each product follow. Sales Variable costs Contribution margin Fixed costs Income Carvings $ 813,100 487,860 325,240 194,240 $ 131,000 Mementos $ 813,100 81,310 731,790 600,790 $ 131,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Henna Company produces and sells two products, Carvings and Mementos. It manufactures these products in separate
factories and markets them through different channels. They have no shared costs. This year, the company sold 47,000
units of each product. Income statements for each product follow.
Sales
Variable costs
Contribution margin
Fixed costs
Incone
Contribution margin
Income (loss)
3. Assume that the company expects sales of each product to increase to 61,000 units next year with no change in unit selling price.
Prepare a contribution margin income statement for the next year (as shown above with columns for each of the two products). (Round
"per unit" answers to 2 decimal places.)
Carvings
$813,100
487,860
325,240
194,240
$ 131,000 $ 131,000
Units
HENNA COMPANY
Contribution Margin Income Statement
Carvings
$ Per unit
Mementos
$ 813,100
$
$
81.310
731,790
600,790
Total
0
0
Mementos
$ Per unit
$
$
Total
0
0
$
0 $
Total
0
0
0
0
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